Frustrated by a bureaucratic court system,investors abandons 34bn/-

14Nov 2018
The Guardian Reporter
Dar es Salaam
The Guardian
Frustrated by a bureaucratic court system,investors abandons 34bn/-

A Turkish investor in logistics and supply of cargo trucks and heavy duty equipment who had plans U$ 15 million (over 34bn/-) in the country by 2020 is scaling down the business with plans to close down thanks to bureaucratic red tape in the country’s justice system.

President John Magufuli congratulating Chief Justice Professor Ibrahim Juma after his swearing in last year at Ikulu.

Aydin Logistic Tanzania Limited’s CEO, Esra Erasit said they have decided to close shop in Dar es Salaam because of dishonest business people who defrauded the company U$ 250,000 (over 574.7m/-) and that efforts to get the cash through the judiciary have also been hit by bureaucracy.

“The first problem of us is the court people and the customer, court people are playing with us, maybe together with the customer,” Erasit said noting that a Dar es Salaam based Gagaja Contractors Company Limited has used the court system to deny paying the balance for a brand new excavator sold in October 2014.

Erasit said through its lawyers, Aydin Logistics sued Gagaja in 2015 at High Court Dar es Salaam Zone and won the case as ruled by Judge J Ndansobera in July 2016 but the defendant filed an appeal which has been dragging on since then.

“Gagaja Contractors were supposed to pay for the excavator in six instalment but only did twice and defaulted forcing us to go to court after efforts to recover the same failed,” Erasit whose company has already scaled down its activities in Dar es Salaam by throwing out most of its 30 full time employees backed by an over U$ 3 million investment made so far.

Gagaja filed an appeal a few days later presided over by High Court Registrar for Dar es Salaam Zone Justice DR Magutu and was supposed to be head in June this year but nothing has happened so far.

A search at Public Procurement Regulatory Authority established that was in October 2015 slapped with a ban not to participate in any public procurement activities for ten years after submitting false documents to win a tender.

Aydin Logistic which is part of Turkish port operator and cargo handling equipment company, Ozuaydin Crane and Port Management Incorporation, planned to heavily in Tanzania by 2025 but frustration is forcing the company to relocate to another neighbouring African country.

While swearing in new Agriculture and Cooperatives Minister, Japhet Hasunga and Minister for Industry, Trade and Investment Joseph Kakunda, President John Magufuli challenged Chief Justice Professor Ibrahim Juma to reign in underperforming judges in the justice system.

“Judges are not saints, there are some who are under-performing and corrupt, I will hand over to you four names which have been presented to me,” Dr Magufuli noted saying his administration will not tolerate laxity among public officials.